Nokia Q2 operating profit jumps 18%, sales rise 8%

Nokia reported an 8 percent year-on-year increase in net sales for the second quarter of 2026, but posted an operating loss as one-off charges weighed on profitability.

According to the company’s financial results, net sales rose to €4.82 billion in Q2 2026 from €4.44 billion a year earlier. Gross margin improved to 44.6 percent from 44.0 percent.

Nokia reported an operating loss of €50 million in the quarter compared with an operating profit of €147 million in the same period last year. Consequently, operating margin declined to -1.0 percent from 3.3 percent.

Justin Hotard, President and CEO, Nokia said, “Q2 demonstrates our strategy is delivering results. Since we set out our plan late last year, Team Nokia has focused on maximizing our opportunity in the AI supercycle. I am encouraged by the execution and progress we have made in a short period of time. We enter the second half with momentum and remain on track to deliver somewhat above the midpoint of our comparable operating profit guidance.”

He added, “In Q2, our AI & Cloud order intake was EUR 2.8 billion, while sales more than doubled year-on-year. The strength was broad-based, as we secured long-term orders in both Optical Networks and IP Networks. We expect around half of these orders to convert to revenue over the next twelve months. Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders.”

Hotard further said, “ As AI evolves, trusted connectivity becomes even more critical and we are delivering market leading innovation that helps customers differentiate and capture value in this new era. Last week we launched the industry’s first commercial AI-RAN platform, which will help customers unlock more from their networks, including more than 100% spectral efficiency gains by 2028. These benefits will be tangible in 5G networks and the platform provides a software upgrade path to 6G. This innovation is one example of how we unlock value for our customers and generate returns for our shareholders.”
CT Bureau